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The automated Quantcha Trade Ideas Service has detected a promising Covered Call trade opportunity for DERMIRA INC. COMMON STOCK (DERM) for the 16-Mar-2018 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DERM was recently trading at $27.25 and has an implied volatility of 105.51% for this period. Based on an analysis of the options available for DERM expiring on 16-Mar-2018, there is a 68.27% likelihood that the underlying will close within the analyzed range of $13.33-$56.65 at expiration. In this scenario, the average linear return for the trade would be 11.21%.

Moneyness: These options are currently 8.21% in the money and there is a 55.33% likelihood that these options will be exercised before or at expiration.

Most upside: If DERMIRA INC. COMMON STOCK closes at or above $25.00, this trade could return up to 24.01%. Based on our analysis, there is a 55.20% likelihood of this return.

The downside: As with any covered call, the risk is substantial as it is vulnerable to a downturn in the underlying itself. There is a 33.42% chance the underlying will close at or below its breakeven price of $20.16, resulting in a net loss on the trade.